Operating the Cloud to Deliver Business Value. Dr Liam Keating IT Director, Intel APAC

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1 Operating the Cloud to Deliver Business Value Dr Liam Keating IT Director, Intel APAC

2 Benefits of Cloud Fact or Fiction? For a few years now, everything we ve heard about cloud has mostly been hype. It ll be the next transformational leap for technology, the pundits said. It will cut complexity, improve flexibility and make IT more strategic to business, the vendors said. CIO Magazine, April 11, 2011 Cloud Computing Will Surpass the Internet in Importance. CIO Magazine, July 9, 2010 Simply put, cloud computing has the potential to turn the economics of enterprise IT upside down, offering key business advantages from a capital and operations-related expense perspective. eweek, Nov 22, 2010 Amazon Outage Sparks Frustration, Doubts About Cloud InfoBoom, April 26, 2011 Microsoft BPOS Downtime Illustrates the Risks of Cloud Computing CIO Insight, May 16, 2011 We are already well on the way with this initiative. The private cloud concept brings with it the benefits of agility, accessibility, efficiency, and the capability to scale while addressing the perceived risks in the public cloud environment today. Dam Gerrard, CIO Avis Europe 3

3 Benefits of Cloud Fact or Fiction? For a few years now, everything we ve heard about cloud has mostly been hype. It ll be the next transformational leap for technology, the pundits said. It will cut complexity, improve flexibility and make IT more strategic to business, the vendors said. CIO Magazine April 11, 2011 Cloud Computing Will Surpass the Internet in Importance. CIO Magazine, July 9, 2010 FACT The benefits of cloud are real. Simply put, cloud computing has the potential to turn the economics of enterprise IT upside down, offering key business advantages from a capital and operations-related expense perspective. eweek, Nov 22, 2010 Amazon Outage Sparks Frustration, Doubts About Cloud, InfoBoom, April 26, 2011 $17M in savings to date from our internal cloud effort. Microsoft BPOS Downtime Illustrates the Risks of Cloud Computing, CIO Insight, May 16, 2011 We are already well on the way with this initiative. The private cloud concept brings with it the benefits of agility, accessibility, efficiency, and the capability to scale while addressing the perceived risks in the public cloud environment today. Dam Gerrard, CIO Avis Europe 4

4 Intel IT Vital Statistics 6,300 IT employees 56 sites, 25 regions >90,000 Intel employees 143 sites, 62 regions 91 Data Centers ~75,000 servers, 458,000 square feet >105,000 Devices >90K PCs (80%+ mobile), >14,000 Handhelds Source: Information provided by Intel IT as of May

5 Intel Data Center Profile D O Design Office Expanded HPC Solutions Enterprise Private Cloud M E S Manufacturing Enterprise Services Factory Automation Enterprise Private Cloud Enterprise Private Cloud Cloud is Key Strategy for Intel IT 6

6 Intel s Private Cloud Journey Evolving Characteristics of Intel s Office / Enterprise Computing Environment Past (2009) Current (2011) Future Goals¹ Traditional Office & Enterprise Design Grid Private O/E/S (IaaS, SaaS) Design Grid (IaaS, SaaS, PaaS) Public (SaaS) Public (SaaS +) ~12% virtualization > 50% virtualization ~75% virtualization Mid-Way through our Journey: Learned A Lot, Challenges Ahead 1 Intel IT future state goals subject to change as of June

7 Internal Cloud Profile VM Requests by Source 40% VMs by Environment 58% 60% 42% Self Service Portal Manual Production Non- Production Applications on Internal Cloud Application Type % Total Applications Engineering 5% Sales/Marketing 19% ERP 13% HR/Finance/Legal 22% Ops/Security/ 26% Manageability Productivity/Colab 15% 8

8 Business Benefits of Intel s Private Cloud Immediate Provisioning Higher Responsiveness Lower Business Costs Flexible Configurations Secured Infrastructure Improving the Velocity and Availability of IT Services 9

9 Measuring Intel IT Impact Through New Operational Framework Velocity Efficiency Quality Capacity 10

10 Intel IT Operational Framework Applied to Cloud Computing Velocity Reduced provisioning time from 90 days to 3 hours now on the way to minutes Efficiency Server consolidation at a 20:1 ratio Capacity Shift from capacity planning to demand forecast model Quality Standard configurations improved consistency and enabled automation 11

11 Best Practice Lessons from Implementing Intel IT s Cloud Cloud Terminology Understand terminology and communicate Leadership Support Clear business goals. Updated policy. IT-Business Partnerships Business process changes are pervasive Set Short Term Priorities Pervasive virtualization + faster provisioning Manage With Data P2V ROI, measured services, BI collection, Server Sizing 12

12 Current Challenges Asset Management and Utilization Demand Forecasting and Capacity Planning IT Workforce Transformation 13

13 Asset Management & Utilization Be Cognizant of Performance Saturation As asset utilization increases, service performance risks constraints, availability and SLA can be risked Understand Degrees of Utilization Customer Allocation view is different from customer usage Our goal is 80% effective asset utilization An Integrated Management View is Critical The performance bottleneck may not be where you think Requires improved metric visibility across all resources 14

14 Integrated Reporting Drives Better Decision-Making Holistic Business Intelligence Systems for IT Operations is Vital 100% App 1 App 2 App 3 89% 100% 81% Utilization Reports 1 38% 43% 51% 49% 36% 22% 0% Has Driven Incremental IT Investments in Storage (SSDs) and Network (10GbE) upgrades 1 Intel IT internal Reports as of June 9,

15 Capacity Planning is Shifting to Demand Forecasting Old Way: Built to Order. Customer asked for infrastructure, we reviewed, approved, ordered, deployed, tested, then delivered Time to service = 3 months Time to service = 3 hours (soon to be minutes) New Way: On Demand Self-Service requires having capacity available anticipating demand and consumption Challenge: Quicker Provisioning Requires Better Visibility into Future Demand 16

16 IT Workforce Transition Before: Future: DB Admin ERP New: Business Service Owner Storage Server Network Security Collaborative Operations Team with end to end view of cloud solution New IT Team Incorporates Breadth and Depth of Service 17

17 Automation Impacts Workforce Also Was Manual Provisioning 3 months Is Automated Self- Service Provisioning 3 hours IT workforce focused on activities with highest value 18

18 Intel IT Private Cloud Re-Cap Align IT Strategy to Business Needs Cloud Transition is a Multi-Year Journey Business Benefit will Generate Value 19

19 Resources for You Over 250 Global IT leaders representing over $100B in annual IT spend Engage with ODCA Learn more about Best Practices Learn about newly released Usage Models 20

20 Thank You More from Intel IT available at

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